Here Comes Santa Crash

So far, the most highly anticipated Santa Rally in world history is heading in the wrong direction. Chalk that up to lessons in Ponzi unwind.

I was speculating last week on Twitter that all of these massive gains in 2024 that accelerated after the election were being "HODL'd" - a jackass Bitcoin term meaning holding on for dear life - until the New Year to avoid paying taxes for another 12 months. My theory was confirmed by the fact that the Nasdaq TRIN has collapsed to record lows indicating zero selling pressure.

Therefore, one could surmise that at this late juncture a) there are no more buyers and b) as we approach the New Year the stampede to the exits will begin ahead of time as one by one fools begin to realize there won't be ANY gains if they hold on until January 2nd.

Here we are, and the market is starting to come apart at the seams.

All of the different global markets are on different schedules this time of year. Most global markets are closed Wednesday for New Year's, but European markets are closed Tuesday as well. Which means those gamblers are potentially going to come back to a smoking crater. And therefore sell in the U.S. overnight.

And then there is the $3 trillion Crypto subprime market which has no holiday hours so those markets can be collapsing round the clock through the New Year.

The inconvenient reality is that 2024 was the high for the Trump stock market.

Next comes the realization that a carnival barker is presiding over the worst economy since 1930.

The new Herbert Hoover.

A lot of gamblers seem to forget that this is how the bear market started in 2022.

The initial crash ended three weeks into January which coincides with Trump's inauguration.

After the Santa Crash, will come the New Year's Currency Crisis due to the U.S. dollar sucking all liquidity out of global markets.

In summary, Ponzi Rules are now in effect:

Last one out, doesn't get out.